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Many software systems are developed in a number of consecutive releases. In each release not only new codeis added but also existing code is often modified. In this study we show that the modified code can be an important sourceof faults. Faults are widely recognized as one of the major cost drivers in software projects. Therefore, we look for methodsthat improve the fault detection in the modified code. We propose and evaluate a number of prediction models that increasethe efficiency of fault detection. To build and evaluate our models we use data collected from two large telecommunicationsystems produced by Ericsson. We evaluate the performance of our models by applying them both to a different release ofthe system than the one they are built on and to a different system. The performance of our models is compared to theperformance of the theoretical best model, a simple model based on size, as well as to analyzing the code in a random order(not using any model). We find that the use of our models provides a significant improvement over not using any model atall and over using a simple model based on the class size. The gain offered by our models corresponds to 38~57% of thetheoretical maximum gain.